Does Dog Haus have the power to hire or fire employees of the franchised restaurant?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
ing, jointly and severally, with all other guarantors, the full payment and performance of your obligations to us and to our affiliate. Upon each transfer or assignment of your interest in your Franchise Agreement, or other change in your ownership interests, and at any other time we request, these holders must re-execute a written guarantee in a form we prescribe.
All employees you hire or employ at your Franchised Restaurant will be your employees and your employees alone, and will not, for any purpose, be deemed to be our employees or subject to our direct or indirect control, most particularly with respect to any mandated or other insurance coverage, taxes or contributions, or requirements regarding withholdings, levied or fixed by any governmental authority. You will file your own tax, regulatory and payroll reports, and be responsible for all employee benefits and workers' compensation insurance payments for your employees and operations. We will not have the power to hire or fire your employees. Our authority under the Franchise Agreement to train and approve your supervisorial or managerial personnel for qualification to perform certain functions at your Dog Haus Restaurant does not
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2025 DOG HAUS WORLDWIDE FDD - FTC 3/24/2025
directly or indirectly vest us with the power to hire, fire or control any of your personnel.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 61–62)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus does not have the power to hire or fire employees of a franchised restaurant. The FDD states that all employees hired at the franchised restaurant are solely the franchisee's employees, and are not considered employees of Dog Haus for any purpose. The franchisee is responsible for all employment decisions, including hiring, firing, training, and establishing remuneration, as well as compliance with wage and hour requirements, personnel policies, benefits, recordkeeping, supervision, and discipline of employees.
This means that as a Dog Haus franchisee, you have complete control over your employees. You are responsible for all aspects of their employment, including their wages, benefits, and working conditions. Dog Haus may offer guidance on employment policies, but this guidance is considered merely examples, and you should consult with local legal counsel experienced in employment law to establish your own employment policies.
This arrangement is typical in franchising, where franchisees are generally considered independent business owners responsible for their own operations and employees. While Dog Haus provides training and may approve supervisorial or managerial personnel, this does not give them the power to hire, fire, or control any of the franchisee's personnel. The franchisee maintains day-to-day control over all operations, activities, and elements of the Dog Haus restaurant, including over their employees.
It is important for prospective franchisees to understand their responsibilities as employers and to comply with all applicable laws and regulations. Franchisees should seek legal advice to ensure that their employment policies are compliant and that they are properly managing their employees.